Comparison of security constrained economic dispatch formulations to incorporate reliability standards on demand response resources into Midwest ISO co-optimized energy and ancillary service market

Abstract

The purpose of this paper is to analyze three formulations developed to facilitate participation of demand response resource Type-1 in the Midwest ISO's co-optimized energy and ancillary service market. While these three formulations appear similar on the surface, careful analysis will show that they can have different impacts on clearing and pricing outcomes. Based on this analysis, the formulation that can maintain reserve product priority and reserve clearing price order is selected and implemented in the Midwest ISO Security Constrained Economic Dispatch (SCED) and Security Constrained Unit Commitment (SCUC) market clearing processes. A 5-bus system is used to illustrate the features of each approach. This paper focuses on SCED formulations. The impact from the discussed formulations on SCUC should be similar.